The forthcoming trade agreement between the Philippines and South Korea is set to create new opportunities for the Philippine banana industry. Starting on January 1, 2025, the agreement will reduce tariffs on bananas, making the country’s exports more competitive in the South Korean market.
Trade Secretary Ma. Cristina Roque highlighted the potential benefits during a market visit, expressing confidence in the agreement’s positive impact. “This agreement will open doors for our banana exporters by gradually lowering tariffs, allowing us to better compete and meet the demands of the South Korean market,” she said.
At present, South Korea applies a 30 percent tariff on bananas imported from the Philippines. The new agreement will lower these tariffs in equal stages each year, eliminating them entirely by the fifth year.
Banana exports play a vital role in the country’s trade and agricultural sectors. While export volumes rose to 2.3 million metric tons in 2023, competition from other banana-producing countries with lower tariffs has limited the Philippines’ growth in this market. “This agreement is an opportunity for us to regain our competitive edge and drive growth in our banana export industry,” Secretary Roque added.
The approval of the executive order to implement the tariff reductions reflects the Philippines’ dedication to strengthening international trade relationships and supporting its agricultural sector. By enhancing access to key markets, this agreement is expected to bolster trade revenues and further economic development.
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